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Ground nut oil



PRODUCT DESCRIPTION AND APPLICATION

 

Ground nut kernel contains 50-55% of oil. The oil obtained from the kernel is yellow to greenish yellow in colour with chief constituents of glycerides of oleic and linoleic acids with lesser amounts of the glycerides of palmitic, stearic, arachidic, behenic, and lignoceric acid. The oil is used as a substitute for olive oil and other edible oils, soaps, salad and cooking oil, mayonnaise and margarine. The meal is an important component of feeds for poultry and cattle.

 

MARKET STUDY

Total apparent consumption (local and imported) during the past seven years ranged from 30,276 tons (2003) to 129,839 tons (2004).  The mean apparent consumption in those years was 67,818 tons and this amount is considered to represent current effective demand for the year 2006. Moreover, in order to estimate the present ( 2008) demand it is assumed that demand for the product grows at a rate of 4% which is equivalent to the growth of population. Accordingly, taking the year 2006 apparent consumption as a base and applying a growth rate of 4% the current unsatisfied demand which excludes local production is estimated at  65,722 tons.

 

RAW AND AUXILARY MATERIALS

The principal raw material required for the production of groundnut oil is groundnut seed, which are produced locally in different regions such as Oromia, Benishangul, SNNPRS, etc. The seed gives 44.5-50% oil, 50-55% meal.  All the other raw materials are also found locally. The raw material, refining chemicals and packing materials requirement of the envisaged plant is indicated in Table 4.1.  The total annual cost of raw and auxiliary materials is estimated to be Birr 10,059,620

 

TECHNOLOGY

Edible oil technology can be grouped into two: mechanical pressing and solvent extraction.  Sometimes the latter compliments the former.  For oilseeds with high oil content such as ground nut, first mechanical pressing will be applied and over 85% of the oil will be extracted.  The remaining oil in the expeller cake will then be extracted with solvent.  For some other oilseed with low oil content, solvent extraction is generally considered as the best alternative.  However, the initial investment cost of solvent extraction is much higher than mechanical pressing.  In addition, solvent extraction is more appropriate for large scale processing than small scale edible oil plants

 

INVESTEMENT

 

The total investment requirement is estimated at Birr 10.57 million, out of which Birr 3    million is required for plant and machinery.

The project is financially viable with an internal rate of return (IRR) of 17.01% and a net present value (NPV) of Birr 8.60 million, discounted at 8.5%.

 










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